4. Booz Allen Hamilton Holding Corporation (NYSE:BAH)
5-Year Average Dividend Growth: 17.84%
Consecutive Years of Dividend Growth: 12
Booz Allen Hamilton Holding Corporation (NYSE:BAH) is a Virginia-based management and technology consulting company that provides a range of services to government agencies, corporations, and non-profit organizations. The stock has delivered a 21.5% return year-to-date, outperforming the market. The company began fiscal year 2025 with strong first-quarter earnings, showcasing its strategic and operational momentum. Management indicated that they are on track to meet their fiscal year guidance and multi-year investment goals. The company’s velocity, leadership, and technology, or VoLT, initiative continues to drive growth, propelling the company forward as it supports clients’ national priority missions with transformative technology solutions.
LVS Advisory highlighted the company’s business in its Q1 2024 investor letter. Here is what the firm has to say:
“We added Booz Allen Hamilton Holding Corporation (NYSE:BAH) to the growth portfolio in October 2023. I am highlighting Booz Allen this quarter because the exercise of comparing BAH to CACI serves as an interesting example of weighing the trade-offs between “quality” and “value” when picking stocks.
Booz Allen is a technology consulting firm specializing in government contracting. Founded in 1914, Booz Allen has a storied history partnering with the US Government which includes helping the US Navy prepare for World War II. These deep roots have helped engrain the Company into the fabric of Washington DC and provide a foundation for the business’ deep moat.” (Click here to read the full text)
Booz Allen Hamilton Holding Corporation (NYSE:BAH) overall returns also came in strong. The company reported revenue of $2.9 billion, which showed a 10.8% from the same period last year. Its net income also grew by 2.4% on a YoY basis to $165 million. The company also presented a positive outlook for its revenues for FY25, expecting it to grow between 8% to 11% during the period.
Booz Allen Hamilton Holding Corporation (NYSE:BAH) also saw an improvement in its cash position during the quarter. For fiscal year 2025, net cash from operating activities was $52.1 million, a significant turnaround from the $71.5 million net cash outflow in the previous year. Additionally, free cash flow for the first quarter of fiscal year 2025 was $19.7 million, compared to a negative $82.0 million in the prior year.
With a five-year average annual dividend growth rate of 17.84%, Booz Allen Hamilton Holding Corporation (NYSE:BAH) is one of the best dividend stocks on our list. Moreover, the company has raised its payouts for 12 years in a row. During the most recent quarter, it returned $66.4 million to shareholders through dividends. The company currently offers a quarterly dividend of $0.51 per share and has a dividend yield of 1.32%, as of August 23.
The number of hedge funds tracked by Insider Monkey owning stakes in Booz Allen Hamilton Holding Corporation (NYSE:BAH) grew to 47 in Q2 2024, from 41 in the previous quarter. These stakes are collectively valued at nearly $346 million.
